§ Mr. Loveridgeasked the Chancellor of the Exchequer if he will state when he proposes to implement EEC Directive 69/335 on the raising of capital, published on pages 29–37 of Part II (Taxation) of the HMSO volumes of European Communities Secondary Legislation.
§ Mr. NottYes. The necessary legislation will be included in this year's Finance Bill and the operative date will be 1st August 1973. On and after that date the existing stamp duties on the authorised capital of companies and on issues of loan capital will no longer be levied. Instead duty will be charged in accordance with the EEC directive on, broadly, the value of contributions to share capital, at the rate of 1 per cent. Credit will be given for companies' capital duty paid in respect of unissued share capital.
482WOur obligation to implement this directive is well known. I am sure all concerned will find it helpful to have advance notice of the timing of this change.